Thursday, September 7, 2023
understand the power sector
#powersector
Want to understand the power sector and how to pick power stocks from the basic? 👇
P.S. - If you can’t click the link below, save this number first or copy paste the link in your browser.
https://twitter.com/kirtanshahcfp/status/1690209090558124032?s=46&t=AushGny_I_JiC4eBIfL4Yw
Wednesday, September 6, 2023
All 50 stocks currently in the Nifty 50 index paid dividends in FY23,
*Dividend Trivia*
#dividend
#stockmarkets
All 50 stocks currently in the Nifty 50 index paid dividends in FY23, which is a rare occurrence.
1. Reliance - ₹9
2. TCS - ₹48 + ₹67
3. HDFC Bank - ₹19 (HDFC - ₹44)
4. ICICI Bank - ₹8
5. Infosys - ₹34
6. HUL - ₹39
7. ITC - ₹12.75 + ₹2.75
8. SBI - ₹8
9. Bharti Airtel - ₹4
10. Bajaj Finance - ₹30
11. L&T - ₹24
12. Kotak Bank- ₹1.5
13. HCL Tech - ₹48
14. Asian Paints - ₹25.65
15. Maruti Suzuki - ₹90
16. Axis Bank - ₹1
17. Adani Enterprises - ₹1.2
18. Titan - ₹10
19. Sun Pharm - ₹11.5
20. Bajaj Finserv - ₹0.8
21. UltraTech Cement - ₹38
22. ONGC - ₹11.25
23. NTPC - ₹7.25
24. Tata Motors - ₹2
25. Wipro - ₹1
26. Nestle - ₹220 (₹27*)
27. JSW Steel - ₹3.4
28. M&M - ₹16.25
29. Power Grid - ₹14.75
30. Adani Ports - ₹5
31. LTI Mindtree - ₹60
32. Tata Steel - ₹3.6
33. Coal India - ₹24.25
34. HDFC Life - ₹1.9
35. SBI Life - ₹2.5
36. Bajaj Auto - ₹140
37. Tech Mahindra - ₹32 + ₹12
38. Grasim - ₹10
39. IndusInd Bank - ₹14
40. Britannia - ₹72
41. Hindalco - ₹3
42. Cipla - ₹8.5
43. Divi's Labs - ₹30
44. Eicher Motors - ₹37
45. Dr. Reddy's Labs - ₹40
46. Tata Consumer - ₹8.45
47. BPCL - ₹4
48. Apollo Hospitals - ₹15
49. Hero MotoCorp - ₹100
50. UPL - ₹10
Services sector activity expands again in August even as PMI falls to 60.1
#servicessector
#PMI
Services sector activity expands again in August even as PMI falls to 60.1.
India's services activity continued to expand in August but the purchasing managers' index (PMI) for the sector fell to 60.1, according to data released by S&P Global on September 5. At 60.1, the August services PMI is well below the over-13-year high of 62.3 posted in July.
However, it remains significantly above the key level of 50 that separates expansion in activity from a contraction. In fact, the services PMI has now spent 25 consecutive months above 50.
The PMI is a survey-based indicator based on the responses of around 400 service companies. The sectors it covers includes non-retail consumer services, transport, information, communication, finance, insurance, real estate, and business services. An index is calculated for each sector, all of which are then combined to give an overall PMI figure.
Given that the PMI measures change in activity from the previous month and is seasonally adjusted, it is seen as a good indicator of the momentum in economic activity. Further, it is the most immediately available data point – PMI for any given month, both for the services and manufacturing sectors, is released in the first week of the subsequent month.
In comparison, official data on economic activity – such as the index of industrial production or the index of eight core industries – are released with a lag of a month or more. PMI data is seen as a lead indicator of the state of the economy and policymakers often rely on it to inform their decisions.
The latest services PMI data comes three days after S&P Global said the manufacturing PMI increased to a three-month high of 58.6 in August from 57.7 in July. As a result, the composite PMI - which is a combination of the manufacturing and services indices - fell to 60.9 from 61.9 in July.
Friday, August 4, 2023
US debt: What does the loss of a triple A rating mean
#USDebt
#rating
#financialhealth
US debt: What does the loss of a triple A rating mean?
Fitch has downgraded its credit rating for the United States, becoming the second of the top-three ratings agencies to strip the country of a top AAA rating. The impact upon the world's top economy is likely to be just symbolic, at least immediately.
*_What is a AAA credit rating?_*
The AAA or "triple-A" rating is the highest rating that an agency gives to a country, locality or company concerning its ability to repay its debts.
The top three global ratings agencies: S&P Global, Fitch and Moody's, use the same system of letters, ranging from a top AAA rating through B, C and D for payment defaults.
The ratings are intended to reflect the economic and/or financial health of a borrower. For countries, the agencies look at economic growth, tax revenue, government spending, deficits and debt levels to determining their ratings.
These ratings are intended for use by investors to guide them in their investment choices.
The lower a rating, the more investors are likely to demand higher interest payments from a borrower to compensate for the risk of not getting repaid.
*_Who still has a triple-A?_*
Only a small group of nations have a triple-A rating from all three major ratings agencies: Australia, Denmark, Germany, Luxembourg, the Netherlands, Norway, Singapore and Switzerland.
Several others have an AAA from one or two of the agencies. That is the case with the United States, which still has a triple-A from Moody's. S&P stripped the United States of its AAA in 2011.
Canada and the European Union are in a similar situation.
*_Who has lost their triple-A?_*
In Europe, several countries including France lost theirs in the wake of the 2008 global financial crisis.
For France, "it was a leap into the unknown," the founder of the Global Sovereign Advisory consultancy, said earlier this year of the country's downgrades in 2012 and 2013.
But the county "didn't lose investors" then or when Fitch lowered its rating in March when the country was in the midst of a wave of strikes over a contentious pension reform.
Fitch's downgrade of the United States was the first time it has changed its rating for Washington since it began rating it in 1994.
Moody's has not changed its rating for the United States since 1949.
What are the consequences? The loss of a triple-A rating is above all symbolic: it sends a strong signal to the markets. In this case, the United States is keeping a very strong AA+ rating and the downgrade will unlikely cause investors to flee as the country still enjoys the confidence of markets and its debt is a critical part of the global financial system.
The yield -- or interest rate -- on US 10-year Treasuries (bonds) which are the reference for the market, rose above 4.0 percent for the third time this year just before Fitch's announcement, and dipped immediately following it.
They have been approaching that level as the US Federal Reserve raises its interest rates, and the dollar rose slightly against the euro on Wednesday in a sign of the greenback's role as a safe haven in times of uncertainty.
Global stock markets were lower, but only moderately so.
Fitch itself intimated that there would likely be little immediate consequence from its downgrade for the United States.
In explaining its decision, Fitch noted "the US dollar is the world's preeminent reserve currency, which gives the government extraordinary financing flexibility."
Analysts agree that there is unlikely to be a significant impact.
"Despite the poor eye candy and initial surprise, the recent US downgrade will unlikely cause a significant Treasuries sell-off or prompt a major shift in investor behaviour mainly because investors experienced a similar downgrade from S&P in 2011 and came away unscathed," said Stephen Innes, managing partner at SPI Asset Management.
Analysts at Capital Economics agreed there would be little impact on the US bond markets, and expressed surprise about the timing of the Fitch downgrade "when the economy now appears poised to pull off the seemingly impossible trick of bringing inflation back to target without triggering a recession".
While it noted the federal deficit is set rise to nearly six percent of GDP and interest costs on government debt set to double in the coming years, Capital Economics said that a lot depends on whether the Fed can soon begin to lower interest rates.
If it can't "then the debt dynamics could quickly become unsustainable," it warned.
Wednesday, August 2, 2023
India's manufacturing PMI edges down to 57.7 in July
*India's manufacturing PMI edges down to 57.7 in July*
India's manufacturing sector activity continued to expand in July compared to June, although the S&P Global Purchasing Managers' Index (PMI) edged down marginally to 57.7, data released on August 1 showed.
The manufacturing PMI stood at 57.8 in June. The gauge of manufacturing sector activity in July is above the key level of 50 - which separates expansion in activity from contraction - for the 25th month in a row.
"The Indian manufacturing sector showed little sign of losing growth momentum in July as production lines continued to motor on the back of strong new order growth," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
"All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world," Harker added.
The July PMI figure marks another solid start to a quarter for India's manufacturing sector, with the index having averaged 57.9 in April-June and 55.7 in the first quarter of 2023.
In July, S&P Global's survey reported "widespread" improvement in demand, which resulted in "another marked expansion" in new manufacturing orders. Further, export orders rose the most since November, especially from the US, Bangladesh, and Nepal. On the whole, the rise in new orders led to the manufacturing sector's output increasing substantially in July, although the rate at which it rose was the least in three months.
Higher orders pushed up employment, with S&P Global describing the pace of job creation in July as "solid" and "broadly in line" with what was seen in May and June.
On the prices front, there was mixed news. While input cost inflation hit a nine-month high in July, it was lower than the series average. As a result, selling prices rose solidly, albeit the least in three months, S&P Global said.
The robust PMI number will be welcomed by policymakers, especially as it comes a day after commerce ministry data showed India's core sector growth hit a five-month high of 8.2 percent in June. While growth has been outperforming expectations - the GDP clocked a growth rate of 6.1 percent in January-March, a full percentage point more than was forecast - inflation has surged in recent months on the back of surging vegetable prices. Such has been the price jump among key food items that economists expect headline retail inflation to rocket past the upper bound of the Reserve Bank of India's (RBI) tolerance band of 2-6 percent in July.
As such, the RBI's Monetary Policy Committee is seen leaving the repo rate unchanged at 6.5 percent on August 10 for the third meeting in a row.
"We expect the recent surge in perishable food prices to reverse in Q3 FY23-24 (October-December). Already, the rise in retail tomato prices is starting to slow. Still, we think the RBI will sound cautious, given the evidence of transmission of price volatility across vegetables. This offers a further reason for the central bank to remain on hold," Rahul Bajoria, managing director and head of EM Asia (ex-China) Economics at Barclays, said in a note on August 1.
Tuesday, August 1, 2023
Monday, July 31, 2023
FPI buying nosedives 94% week-on-week; are dollars taking a “U” turn on Dalal Street?
#fpi
#FDI
#foreignportfolioinvestors
#markets
FPI buying nosedives 94% week-on-week; are dollars taking a “U” turn on Dalal Street?
The relentless buying by foreign portfolio investors triggered a sharp rally in Indian equities and took benchmark indices to all-time highs. However, the buying frenzy among the big bulls seems to be ebbing.
FPIs net invested a mere Rs 468 crore in domestic markets during the week ended July 28, compared to Rs 7,804 crore in the preceding week.
Benchmarks Sensex and Nifty 50 registered their first weekly loss after four consecutive gains, as investors booked partial profits.
But on a monthly basis, inflows from FPIs were positive for the fourth consecutive month in July. They net invested over $4 billion in July, but this was lower than the over $6 billion inflows in June.
Since March this year, FPIs have net invested nearly $19 billion in Indian equities, which is more than the $18 billion of outflows witnessed in the whole of 2022.
*_Trend Reversal?_*
After a relentless run for four months, data indicators do suggest that the big bulls may feel fatigue and this could result in rangebound trade in the near term.
In the last 33 years, there have been 23 occasions, excluding the current set of 5 months, where the index has seen 5 straight months of gains, Sriram Velayudhan of IIFL Securities pointed out.
“Interestingly, the probability of successive months with positive returns gradually reduces as we enter the 6/7/8 months set. In short, based on empirical evidence, we may be now venturing into a territory where momentum is likely to take a breather,” he said.
The trading strategy of FPIs hinges a lot on the movement of the dollar index. In July, the index fell over 1%, and the movement in the coming sessions will be closely tracked.
FPIs have been net investors in automobiles, financials, capital goods, real estate and FMCG stocks in the past 2-3 months, and one needs to see if this trend continues.
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